Livecache(LC) has a important role to play in APO architecture.
From a pure technical point of view, LC is installed on a separate server with huge memory to take advantage of it's resources. LC db is always installed on MaxDB. LC stores the data in object oriented database management system (ODBMS) where data is identified by OID(object ID). This makes navigation with help of physical pointers is very fast and effective, especially for complex data with many object classes. Access time becomes around less than 10 microsecond with Livecache where in traditional RDBMS it's around 1mS. Also most of the objects are held in the liveCacheu2019s data cache in main memory. This speeds up the retrieval of information because no disk access is required.
For more information refer to the following links :-
SAP recommends that LiveCache be installed on a different physical instance. Technically, it is possible to run the app and LC on a single physical instance with two logical servers. Your company might do this in a Sandbox or Development system, but this is a poor choice when you have to support production type transaction loads.
General connection information is contained in the links so kindly supplied by our colleagues Shivaji and Manish. I believe that if you re-read the pages in these links you will find how the servers are connected. If you crave more detail, you need to look at the SCM Installation documentation.
Normally, your Basis and DB admin people will take care of maintaining the connection between the two servers when SCM is installed. Once these are set up and running, LC functioning is mostly transparent, to both functional IT as well as to end users.
Functionally, LiveCache mainly gives you a much higher level of performance over a standard disk-based data storage solution.
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